Residential Localities Understanding the Demand of Real Estate Consumers
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India’s Top 10 Preferred Residential Localities Understanding the demand of real estate consumers Q3 2019 Top 10 preferred localities of India | Localities with connectivity and ready supply gathering pace Q3 2019 Magicbricks Research tracks the consumer preference across the top 100 cities in Rank City Locality Price Range YoY Change QoQ Change India to gauge the demand potential for various localities. Our analysis also throws 1 Noida Noida Extension 2900-4100 1% 2% light on the recent housing and consumer trends in the current macroeconomic 2 Mumbai Mira Road 6800-9700 5% 3% environment. Accordingly, We have analysed the top 10 localities in India by consumer search for Q3 2019 on Magicbricks, India’s No. 1 property site. 3 Pune Wakad 5500-7800 1% 0% 4 Hyderabad Kukatpally 4500-7400 11% 1% “Our Analysis shows that Pune and 5 Bengaluru Whitefield 4600-7400 5% 1% 6 Pune Baner 5900-9100 1% 1% Hyderabad were the top-performing 7 Hyderabad Kondapur 5000-7400 11% 4% residential markets with three of 8 Hyderabad Gachibowli 5100-8000 9% 4% their localities featuring in Top 10 list 9 Navi Mumbai Kharghar 7000-10800 4% 3% 10 Pune Pimple Saudagar 6100-8300 1% 0% of most searched and preferred Note: Prices are in INR per Sqft. localities by consumers for buying” Average asking prices for Top 10 most searched localities in India in Q3 2019 • Noida Extension (NCR), Mira Road (Mumbai) and Wakad (Pune) were the most 10,000 9,000 8,300 searched localities in Q3 2019 7,500 8,000 7,100 6,600 6,200 6,500 • Due to the Government’s push on Affordable Housing, India witnessed mid-segment 5,900 5,900 6,000 localities dominating the searches in 2019. Consequently, 2 and 3 BHKs were commonly in demand across the markets. 4,000 3,600 • Except for Noida Extension, rest of the 9 top localities had the average residential 2,000 prices between INR 6,000 and 9,000 per sq.ft. 0 • Buyers continued to prefer ready to move in apartments, with eight out of the top ten localities witnessing more than 75% of consumers searching for ready Baner Wakad Kharghar apartments. Kondapur Mira Road Whitefield Kukatpally Gachibowli • Most localities in top 10 list witnessed price increase due to launch of premium Extension Noida Pimple Saudagar projects in higher price brackets. Noida Bangalore Hyderabad Pune Mumbai Navi Mumbai Note: Prices are in INR per Sqft. Disclaimer: The data represented above is compiled by Magicbricks from multiple sources. Magicbricks gives no warranty, express or implied, as to the accuracy, reliability, and completeness of any information & does not accept any liability on the information which may or may not be subject to change from time to time due to Governmental or non Governmental regulations/directions. Noida Extension | Affordability and availability driving demand Q3 2019 Following the rapid development of Noida as a satellite city to Delhi, the Uttar Pradesh (UP) government developed a planned City - Greater Noida extension to it, known as Greater Noida. The Greater Noida sectors adjoining Crossings Republik (Ghaziabad) sector 121 (Noida), and Tech Zone 4 (Greater Noida), are together referred to as Noida Extension. It hubs well-known developments like Location: Gaur City, ATS Rhapsody and Mahagun My Woods. Affordability and connectivity are the prime selling propositions for this North region. As Noida Extension’s development is fairly recent, social infrastructure development is in its developing phase and residents have to rely on the more developed localities in Noida such as sector 62 cluster and Sector 18. The newly constructed Noida-Greater Noida Metro is just 15 minutes (6 km) from Noida extension. Price per sq ft: INR 2900-4150 Magicbricks Analysis According to Magicbricks research, the prices are likely to remain stable for some time in Noida Extension, as it has abundant supply and developers are offering various schemes and amenities to push for sale. Property Type: • The locality has an average asking price of INR 3,530 per sqft, lower than most localities of neighbouring city of Noida. Multi-storey According to our data, asking prices witnessed 1% increase YoY • 2 and 3 BHKs dominate the demand, with nuclear families increasingly moving here, especially due to the affordable rents • 78% of the buyers are looking for ready properties showing aversion to under-construction projects carrying the risk of BHKs Available: construction delay. 1,2, and 3 BHKs z Source: Google Maps Price trend analysis Buyer’s preference Rank City Locality YoY Change1 QoQ Change1 3,700 1 Noida Noida Extension 1% 2% 3,600 2 Mumbai Mira Road 5% 3% 10% 3 Pune Wakad 3,500 1% 0% 4 Hyderabad Kukatpally 11% 1% 3,400 43% 5 Bengaluru Whitefield 5% 1% 3,300 6 Pune Baner 1% 1% 3,200 46% 7 Hyderabad Kondapur 11% 4% 3,100 8 Hyderabad Gachibowli 9% 4% 3,000 9 Navi Mumbai Kharghar 4% 3% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 2 BHK 3 BHK Others 10 Pune Pimple Saudagar 1% 0% Note: Prices are in INR per Sqft. Note 1 change represents movement in asking price Source: Magicbricks Research Disclaimer: The data represented above is compiled by Magicbricks from multiple sources. Magicbricks gives no warranty, express or implied, as to the accuracy, reliability, and completeness of any information & does not accept any liability on the information which may or may not be subject to change from time to time due to Governmental or non Governmental regulations/directions. Mira Road | Connectivity and affordability prime demand drivers Q3 2019 Mumbai provides plenty of employment opportunities as the financial hub of India, though the sky-high prices and a lack of City - Mumbai developable land has pushed development to Vasai-Virar in north and Thane and Navi Mumbai in east. Development of Mira- Bhayandar truly started with the creation of Mira Bhaindar Municipal Corporation in 1985. The more developed southern Location: section of Mira-Bhaindar, popularly known as Mira Road, has become the mid-segment housing hub of Mumbai region. Peripheral Western Line of Mumbai Railway and Western Express Highway have ensured excellent connectivity to this location. The under-construction Line 7 of Mumbai Metro (Dahisar East - Andheri East), which is likely to be completed by 2020, should further integrate Mira Road with Mumbai, driving residential demand here. Price per sq ft: INR 6800-9700 Magicbricks Analysis According to Magicbricks research, Mira Road is witnessing healthy development, with a steady rise in prices, as Mumbai’s Property Type: buyers look for affordable options in a slower economy. Multi-storey • Mira Road has an average asking price of INR 8,300 per sqft, lower than most Mumbai localities. Despite overall stagnancy in the market, the average asking price in Mira Road has increased 3% YoY • The average apartment size is 900 sq ft lowest among the top 10 localities in India BHKs Available: • Mumbai being the costliest city, 2 BHK are in vogue and affordability is driving the buyer preference for smaller apartment sizes, with 45%of the buyers looking for 2 BHKs, and 35% for 1 BHKs. 1,2, and 3 BHKs z Source: Google Maps Price trend analysis Buyer’s preference Rank City Locality YoY Change1 QoQ Change1 9,000 1 Noida Noida Extension 1% 2% 2 Mumbai Mira Road 5% 3% 8,500 6% 3 Pune Wakad 1% 0% 14% 8,000 4 Hyderabad Kukatpally 35% 11% 1% 7,500 5 Bengaluru Whitefield 5% 1% 6 Pune Baner 7,000 1% 1% 7 Hyderabad Kondapur 11% 4% 6,500 45% 8 Hyderabad Gachibowli 9% 4% 6,000 9 Navi Mumbai Kharghar 4% 3% Q3 2018 Q4 2018 Q1 2019 Q2 2019 Q3 2019 1 BHK 2 BHK 3 BHK Others 10 Pune Pimple Saudagar 1% 0% Note: Prices are in INR per Sqft. Note 1: change represents movement in asking price Source: Magicbricks Research Disclaimer: The data represented above is compiled by Magicbricks from multiple sources. Magicbricks gives no warranty, express or implied, as to the accuracy, reliability, and completeness of any information & does not accept any liability on the information which may or may not be subject to change from time to time due to Governmental or non Governmental regulations/directions. Wakad | Proximity to Hinjewadi driving demand Q3 2019 Pune’s Hinjewadi village emerged as a commercial hub when Maharashtra Industrial Development Corporation (MIDC) City - Pune developed the Phase I of Rajiv Gandhi Infotech Park in Hinjewadi. Further development of Phase II and III, has made it the focal point of major IT companies in India including Cognizant, Infosys, Wipro, and Tata Technologies. However, Hinjewadi and Location: nearby villages fall outside the Pimpri Chinchwad Municipal Corporation (PCMC), and lacked holistic infrastructure Peripheral development, and Wakad (part of PCMC), being adjacent to Hinjewadi, became the preferred residential destination for IT professionals. Proximity to Hinjewadi, connectivity with Mumbai (2.5 hours on NH8), and affordability (as compared to Aundh and Baner) has driven the residential demand for Wakad. Price per sq ft: INR 5500-7800 Magicbricks Analysis Magicbricks research suggests that Wakad is likely to continue to see a steady residential demand, as more and more IT Property Type: companies pour in Hinjewadi. Multi-storey • The locality has an average asking price of INR 6,650 per sqft, witnessing 1% increase in the last one year • The average apartment size is 1170 sq ft, second-lowest amongst the top 10 localities • 75% of consumer searches for 1 and 2 BHKs, with 2 BHKs alone attracting 62% of the buyer preference BHKs Available: • 75% of the buyers looking for unfurnished properties, preferring cheaper options amongst the properties available.